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Stationer PaperlinX has promised more cost cutting as it continues to recover from its near-death experience in 2008.

Yesterday it reported a full-year loss of $225.3 million, with the headline figure inflated by $153.8 million in one-off write-downs associated with the closure of its Tasmanian paper manufacturing business.

Describing 2010 as the most difficult but also most transformational year in PaperlinX’s history, chief executive Tom Park said the company had taken significant costs out of the business but had further to go.

PaperlinX could begin to concentrate on running the business after spending the past 18 months dealing with the fallout from breaches of debt covenants.

“Now, with the distractions of the refinancing, exit from historical lenders and the closure of Tasmanian operations and various restructurings behind us, we are able to focus fully on our underlying business,” Mr Park said.

PaperlinX, which sells paper around the world, noted that the paper market was stabilising after an “unprecedented” fall in demand from the European and North American markets.

“Paper consumption in all regions continues to be impacted by the weaker global economic activity, but the rate in decline has slowed with recent stabilisation,” he said.

PaperlinX’s loss was an improvement on the $798.2 million loss sustained in 2009.

Revenue was $5.1 billion, down 19 per cent from $6.3 billion a year ago.

Gross debt has been reduced by $1.3 billion since December 2008, with $301 million gross debt remaining within the company.

Having traded at more than $4 a share in 2006, PaperlinX was hit hard by the global financial crisis and fell as low as 29.5¢ last December.

PaperlinX has closed its Tasmanian paper mill and its head count has fallen by more than 1000 over the past year to 6508 employees.

Mr Park said the company was targeting margins of 20 per cent-plus on its paper sales.